Mortgage refinance simply means consolidating all your outstanding mortgages into one mortgage then repaying all your mortgages as one.Unknown to many,this is the simplest way to avoid the hassle which comes with servicing several mortgages at the same time.
Mortgage refinancing is a practise which has been around for several decades especially in developed countries.Doing a mortgage refinance is easier as doing a debt consolidation.It involves approaching your mortgage provider and requesting for a bigger mortgage which will repay all the outstanding mortgages.
In Kenya,Mortgage Refinance has taken root especially on Real Estate investors who are taking the advantage of this practise to enable them do several investments at the same time.Companies like S & L,and Housing finance do encourage this practise in order to assist their customers reduce the rates of Mortgage repayment since all outstanding rates are consolidated and paid as one .
The main reason why several people are considering this practise of Mortgage Refinance is that it reduces the amount of rates paid to mortgage lenders while at the same it give a peace of mind since now you get to concentrate on repaying only one mortgage.
Mortgage Refinancing will also help the lenders to do a fair lending practise in terms of repayment rates since the customer does feel the full pinch when doing a repayment since all rates are calculated at the time of mortgage refinance and could be affected if inflation rates takes on the country's economy